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Franklin Investments, LLC_Development AgreementMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Development Agreement with Franklin Investments, LLC DATE: March 30, 2011 Dubuque httitt AFAmedcaCity 1111 ' 2007 Economic Development Director Dave Heiar recommends City Council approval of a Development Agreement with Franklin Investments, LLC for the property located at 39 Bluff Street. The key elements of the Development Agreement are 1) The project will receive up to $190,000 in incentives through the Downtown Housing Incentive Program. 2) The project will receive a 15 -year TIF rebate in the form of a yearly tax rebate on the value of the assessable improvements (increased valuation). 3) Developer will spend at least $1,750,000 to create 21 market -rate residential units on Bluff Street and shall be substantially completed by December 31, 2011. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: Development Agreement with Franklin Investments, LLC DATE: March 24, 2011 Dubuque kratiA AUinedcacnr 1111 r 2007 INTRODUCTION On March 21, the City Council set a public hearing for April 4 on a proposed Development Agreement with Franklin Investments, LLC. This memorandum presents for City Council consideration a Resolution approving a Development Agreement on the property located at 39 Bluff Street in downtown Dubuque. BACKGROUND City staff has worked with Franklin Investments, LLC to formulate a funding package to redevelop the property located at 39 Bluff Street. Franklin Investments, LLC plans to invest $1,750,000 in redeveloping 39 Bluff Street to include creating 21 apartments for market -rate rental. DISCUSSION The proposed Development Agreement provides for some incentives to encourage redevelopment of the property. The Development Agreement requires the redevelopment of the property located at 39 Bluff Street. The key elements of the Development Agreement include the following: 1) The project will receive upto $190,000 in incentives through the Downtown Housing Incentive Program. 2) The project will receive a 15 year TIF rebate in the form of a yearly tax rebates on the value of the assessable improvements (increased valuation). 3) Developer will spend at least $1,750,000 to create 21 market -rate residential units on Bluff Street and shall be substantially completed by December 31, 2011. Additional terms and conditions of the disposition of the property are included within the attached Development Agreement. RECOMMENDATION Following the public hearing, I recommend that the City Council approve the Development Agreement which includes urban renewal tax increment obligations to Franklin Investments, LLC. for the purpose of redeveloping the building located at 39 Bluff Street. ACTION STEP The action step for the City Council is to adopt the attached Resolution. F: \USERS \Econ Dev \Franklin School\2011324 Franklin Investments Memo Approve DA Public Hearing.doc Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Setting a Public Hearing for a Development Agreement with Franklin Investments, LLC to Redevelop Property at 39 Bluff Street DATE: March 14, 2011 Economic Development Director Dave Heiar is recommending that a public hearing be set for April 4, 2011, to consider a Development Agreement with Franklin Investments, LLC for redevelopment of the property located at 39 Bluff Street, most recently the site of Central Alternative School. I concur with the recommendation and respectfully request Mayor and City Council approval. C- aeI C. Van Milligen igen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director Dubuque klitd An- AnelcaCIty t 1 1 1 1 r 2007 Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: Dubuque kiftd Ire! 2007 L. ) Setting a Public Hearing for a Development Agreement with Franklin Investments, LLC to redevelop property at 39 Bluff Street DATE: March 9, 2011 INTRODUCTION This memorandum presents for City Council consideration a Resolution which sets a public hearing for April 4, 2011 on entering into a Development Agreement on the property located at 39 Bluff Street (former Central Alternative School building). BACKGROUND City staff has worked with Franklin Investments, LLC to formulate a funding package to redevelop the property located at 39 Bluff Street. Franklin Investments, LLC plans to invest $1,750,000 in redeveloping 39 Bluff Street to include creating 20 apartments for market -rate rental. DISCUSSION The proposed Development Agreement provides for some incentives to encourage redevelopment of the property. The Development Agreement requires the redevelopment of the property located at 39 Bluff Street. The key elements of the Development Agreement include the following: 1) The project will receive upto $190,000 in incentives through the Downtown Housing Incentive Program. 2) The project will receive a 15 year TIF rebate in the form of a yearly tax rebates on the value of the assessable improvements (increased valuation). 3) Developer will spend at least $1,750,000 to create 20 market -rate residential units on Bluff Street and shall be substantially completed by December 31, 2011. Additional terms and conditions of the disposition of the property are included within the attached Development Agreement. RECOMMENDATION I recommend that the City Council set a public hearing on the Development Agreement which includes urban renewal tax increment obligations to Franklin Investments, LLC for the purpose of redeveloping the property located at 39 Bluff Street as detailed in the attached Development Agreement. ACTION STEP The action step for the City Council is to adopt the attached Resolution setting a public hearing on the proposed Development Agreement. F: \USERS \Econ Dev \Franklin School\2011309 Franklin Investments Memo Setting Public Hearing.doc RESOLUTION NO. 121 -11 A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT WITH FRANKLIN INVESTMENTS, LLC FOR THE PROPERTY LOCATED AT 39 BLUFF STREET Whereas, the City of Dubuque, Iowa, has created a Downtown Incentives Program for the purpose of stimulating reinvestment in the Greater Downtown Urban Renewal District; and Whereas, the City of Dubuque, Iowa is encouraging the use of financial incentives to help finance code compliance activities and to spur redevelopment; and Whereas, it is the determination of this Council that approval of the Development Agreement for the rehabilitation of the Property owned by Franklin Investments, LLC according to the terms and conditions set out in the Development Agreement is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Development Agreement with Franklin Investments, LLC is hereby accepted and approved. Section 2. That the Mayor is hereby authorized to execute, on behalf of the City Council of the City of Dubuque, Iowa, the attached Development Agreement with Franklin Investments, LLC. Section 3. That the City Manager is hereby authorized to execute, on behalf of the City Council of the City of Dubuque, Iowa, all necessary grant documents and is further authorized to disburse grant funds in accordance with the terms and conditions of the executed agreement. Atte Passed, approved and adopted this 4 day of April, 2011. anne F. Schneider, City Clerk F: \USERS \Econ Dev \Franklin School\20110324Franklin Investment Approve DA Public Hearing Resolution.doc Roy D. Buol, Mayor Doc ID: 010486490001 Type: GEN Kind: AGREEMENT Recorded: 05/14/2020 at 04:21:55 PM Fee Amt: $7,00 Page 1 of 1 Dubuque County Iowa John Murphy Recorder Fi1e2020-00006249 Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 MEMORANDUM OF DEVELOPMENT AGREEMENT A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal corporation, and Franklin Investments, LLC, was made regarding the following described premises: Lot 2-1 & 2-2 of City Lots 596, 597, & 597A Lot 2-1-2 & Lot 2-2 of City Lot 600 & Lots 3 Thru 6 of City Lot 600 in the City of Dubuque The Development Agreement is dated for reference purposes the 4th day of April, 2011, and contains covenants, conditions, and restrictions concerning the sale and use of said premises. This Memorandum of Development Agreement is recorded for the purpose of constructive notice. In the event of any conflict between the provisions of this Memorandum and the Development Agreement itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A complete counterpart of the Development Agreement, together with any amendments thereto, is in the possession of the City ofDubuqueand may be examined at its offices as above provided. Dated is' '�d�y of May, 2020. CITY OF D UQUE, IOWA By: Barry . Lindahl, Senior Counsel STATE OF IOWA ss: DUBUQUE COUNTY On this 1,day of May, 2020, before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Barry A. Lindahl, to me personally known, who being by me duly sworn did say that he is the Senior Counsel of the City of Dubuque, that said instrument was signed on behalf of City of Dubuque and the Senior Counsel acknowledged said instrument to be his free act and deed on behalf of the City of Dubuque. L . „%iikitcvs, Notary Public, tate of Iowa TRACEY L. STECKLEIN Commission Number 716018 My Comm Exp. q'1)-a3 Prepared by /Return to: David Heiar. 50 W. 13 Street, Dubuque IA 52001, 563 589 -4393 RESOLUTION NO. 98 -11 FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE OBLIGATIONS AND THE EXECUTION OF A DEVELOPMENT AGREEMENT RELATING THERETO WITH FRANKLIN INVESTMENTS, LLC AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF Whereas, City and Franklin Investments, LLC have entered into a Development Agreement, subject to the approval of the City Council, a copy of which is now on file at the Office of the City Clerk, City Hall, 13 and Central Avenue, Dubuque, Iowa; and Whereas, the City Council has tentatively determined that it would be in the best interests of the City to approve the Development Agreement, with Franklin Investments, LLC; and Whereas, it is deemed necessary and advisable that City should authorize Urban Renewal Tax Increment Revenue obligations, as provided by Chapter 403 of the Code of Iowa, and to enter into the Development Agreement relating thereto for the purpose of carrying out an Urban Renewal Plan as hereinafter described; and Whereas, before said obligations may be approved, Chapter 403 of the Code of Iowa requires that the City Clerk publish a notice of the proposal and of the time and place of the meeting at which the City Council proposes to take action thereon and at which meeting the City Council shall receive oral and /or written objections from any resident or property owner of said City to such proposed action. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Clerk is hereby authorized and directed to cause this Resolution and a notice to be published as prescribed by Iowa Code Section 403.9 of a public hearing on the City's intent authorize Urban Renewal Tax Increment Revenue obligations, to be held on the 4 day of. April, 2011, at 6:30 o'clock p.m. in the City Council Chambers at the Historic Federal Building, 350 W. 6th St., Dubuque, Iowa. Section 2. The City Council will meet at said time and place for the purpose of taking action on the matter of authorizing Urban Renewal Tax Increment Revenue obligations and the execution of the Development Agreement relating thereto with Franklin Investments, LLC, the proceeds of which obligations will be used to carry out certain of the special financing activities described in the Urban Renewal Plan for the Greater Downtown Urban Renewal District, consisting of the funding of economic developments grants to Franklin Investments, LLC pursuant to the Development Agreement under the terms and conditions of said Urban Renewal Plan. It is expected that the aggregate amount of the Tax Increment Revenue obligations is approximately $788,000. Section 3. The Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than four days nor more than twenty days before the date of said meeting on the issuance of said obligations. Section 4. That the notice of the proposed action to issue said obligations shall be in substantially the form attached hereto. Attest: Passed, approved and adopted this 21 day of March, 2011. ,%„,,aAJ anne F. Schneider, City Clerk F: \USERS \Econ Dev \Franklin School\20110309 Franklin Investments DA Resolution setting Public Hearing.doc NOTICE OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED AUTHORIZATION OF URBAN RENEWAL TAX INCREMENT REVENUE OBLIGATIONS AND THE EXECUTION OF A DEVELOPMENT AGREEMENT RELATING THERETO WITH FRANKLIN INVESTMENTS, LLC PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 4 day of April, 2011, at 6:30 p.m. in the City Council Chambers at the Historic Federal Building, 350 W. 6th St., Dubuque, Iowa, at which meeting the City Council proposes to take action for the authorization of Urban Renewal Tax Increment Revenue obligations and the execution of a Development Agreement relating thereto with Franklin Investments, LLC, in order to carry out certain of the special financing activities in the Urban Renewal Plan for the Greater Downtown Urban Renewal District, consisting of the funding of economic development grants to Franklin Investments, LLC, pursuant to a Development Agreement entered into with Franklin Investments, LLC under the terms and conditions of said Urban Renewal Plan. It is expected that the aggregate amount of the Tax Increment Revenue obligations is approximately $788,000. At the meeting, the City Council will receive oral and written objections from any resident or property owner of said City to the above action. After all objections have been received and considered, the City Council may at this meeting or at any adjournment thereof, the approval of the Development Agreement, and authorization of such Tax Increment Revenue obligations or will abandon the proposal. By order of the City Council said hearing and appeals there from shall be held in accordance with and governed by the provisions of Section 403.9 of the Code of Iowa. This notice is given by order of the City Council of the City of Dubuque, Iowa, as provided by Chapter 403 of the Code of Iowa. Dated this day of 2011. Jeanne F. Schneider City Clerk of Dubuque, Iowa F: \USERS \Econ Dev \Franklin School\20110309 Franklin Investments DA Resolution setting Public Hearing.doc DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND FRANKLIN INVESTMENTS, LLC THIS DEV ()PM f T AGREEMENT (Agreement) dated for reference purposes the E day of � 14, «, (2011 is made and entered into by and between the City of Dubuque, Iowa ity), and Franklin Investments, LLC. (Developer). WHEREAS, Developer is the owner of the following described real estate (the Property): Lot 2-1 & 2-2 of City Lot 595 City Lots 596, 597, & 597A Lot 2-1-2 & Lot 2-2 of City Lot 600 & Lots 3 Thru 6 of City Lot 600in the City of Dubuque; and WHEREAS, the Property is located in the Greater Downtown Urban Renewal District (the District) which has been so designated by City Council Resolution 21-11 as a slum and blighted area (the Project Area) defined by Iowa Code Chapter 403 (the Urban Renewal Law); and WHEREAS, Developer has undertaken the redevelopment of a vacant building located on the Property and will be operating the same during the term of this Agreement; and WHEREAS, Developer will make an additional capital investment in building improvements, equipment, furniture and fixtures in the Property (Project); and WHEREAS, the Property is historically significant and it is in the City's best interest to preserve the Property; and WHEREAS, pursuant to Iowa Code Section 403.6(1), and in conformance with the Urban Renewal Plan for the Project Area adopted on May 18, 1967 and last amended on March 7, 2011, City has the authority to enter into contracts and agreements to implement the Urban Renewal Plan, as amended; and WHEREAS, the Dubuque City Council believes it is in the best interests of the City to encourage Developer in the development of the Property by providing certain incentives as set forth herein. NOW, THEREFORE, the parties to this Development Agreement, in consideration of the promises, covenants and agreements made by each other, do hereby agree as follows: 052510 SECTION 1. REPRESENTATIONS AND WARRANTIES 1A Representations and Warranties of City. In order to induce Developer to enter into this Agreement, City hereby represents and warrants to Developer that to the best of City's knowledge: (1) City has duly obtained all necessary approvals and consents for its execution, delivery and performance of this Agreement and that it has full power and authority to execute, deliver and perform its obligations under this Agreement. City's attorney shall issue a legal opinion to Developer at time of closing confirming the representation contained herein, in the form attached hereto as Exhibit A. (2) City shall exercise its best efforts to cooperate with Developer in the development process. (3) City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion. (4) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the charter of City, any evidence of indebtedness, agreement or instrument of whatever nature to which City is now a party or by which it or its property is bound, or constitute a default under any of the foregoing. (5) There are no actions, suits or proceedings pending or threatened against or affecting City in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the financial position or operations of City or which affects the validity of the Agreement or City's ability to perform its obligations under this Agreement. (6) No ordinance or hearing is now before any local governmental body that either contemplates or authorizes any public improvements or special tax levies, the cost of which may be assessed against the Property. To the best of City's knowledge, there are no plans or efforts by any government agency to widen, modify, or re -align any street or highway providing access to the Property and there are no pending or intended public improvements or special assessments affecting the Property which will result in any charge or lien be levied or assessed against the Property. (7) The representations and warranties contained in this article shall be correct in all respects on and as of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date. 2 1.2 Representations and Warranties of Developer. The Developer makes the following representations and warranties: (1) Developer is a limited liability company duly organized and validly existing under the laws of the State of Iowa, and has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as presently proposed to be conducted, and to enter into and perform its obligations under the Agreement. (2) This Agreement has been duly authorized, executed and delivered by Developer and, assuming due authorization, execution and delivery by the City, is in full force and effect and is a valid and legally binding instrument of Developer enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. Developer's counsel shall issue a legal opinion to the City, at time of closing, confirming the representations contained herein, in the form attached hereto as Exhibit B. (3) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the articles of incorporation or the bylaws of Developer or any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which Developer is now a party or by which it or its property is bound, or constitute a default under any of the foregoing. (4) There are no actions, suits or proceedings pending or threatened against or affecting Developer in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business, financial position or result of operations of Developer or which affects the validity of the Agreement or Developer's ability to perform its obligations under this Agreement. (5) Developer will perform its obligations under this Agreement in accordance with the material terms of this Agreement, the Urban Renewal Plan and all local, State and federal laws and regulations. (6) Developer will use its best efforts to obtain, or cause to be obtained, in a timely manner, all material requirements of all applicable local, state, and federal laws and regulations which must be obtained or met. (7) Developer has firm commitments for permanent financing for the Project in an amount sufficient, together with equity commitments, to successfully complete the requirements of this Agreement and shall provide evidence thereof to City prior to the Closing Date. 3 1.3 Closing. The closing shall take place on the Closing Date which shall be the 15th day of April, 2011, or such other date as the parties shall agree in writing but in no event shall the Closing Date be later than the 1st day of June, 2011. Consummation of the closing shall be deemed an agreement of the parties to this Agreement that the conditions of closing shall have been satisfied or waived. 1.4 Conditions to Closing. The closing of the transaction contemplated by this Agreement and all the obligations of Developer under this Agreement are subject to fulfillment, on or before the Closing Date, of the following conditions: (1) The representations and warranties made by City in Section 1.1 shall be correct as of the Closing Date with the same force and effect as if such representations were made at such time. At the closing, City shall deliver a certificate to that effect in the form of Exhibit C. (2) Developer shall have the right to terminate this Agreement at anytime prior to the consummation of the closing on the Closing Date if Developer determines in its sole discretion that conditions necessary for the successful completion of the Project contemplated herein have not been satisfied in Developer's sole discretion. Upon the giving of notice of termination by Developer to City, this Agreement shall be deemed null and void. (3) Developer and City shall be in material compliance with all the terms and provisions of this Agreement. (4) Developer shall have furnished City with evidence, in a form satisfactory to City (such as a letter of commitment from a bank or other lending institution), that Developer has firm financial commitments in an amount sufficient, together with equity commitments, to complete the Minimum Improvements (as defined herein) in conformance with the Construction Plans (as defined herein), or City shall have received such other evidence of Developer's financial ability as the reasonable judgment of the City requires. (5) Developer's counsel shall issue a legal opinion to the City confirming the representations contained herein in the form attached hereto as Exhibit B. 1.5 City's Obligations at Closing. At or prior to the Closing Date, City shall deliver to Developer such other documents as may be required by this Agreement, all in a form satisfactory to Developer. SECTION 2. DEVELOPMENT ACTIVITIES 2.1 Required Minimum Improvements. Developer will make a capital investment of not less than one million seven hundred fifty thousand dollars ($1,750,000.00) to acquire and 4 improve the Property (the Minimum Improvements). These Minimum Improvements include creating twenty-one (21) apartments for market -rate rental. 2.2 [This section intentionally left blank] 2.3 Plans for Construction of Minimum Improvements. Plans and specifications with respect to the development of the Property and the construction of the Minimum Improvements thereon (the Construction Plans) shall be in conformity with Urban Renewal Plan, this Agreement, and all applicable state and local laws and regulations, including but not limited to any covenants, conditions, restrictions, reservations, easements, liens and charges, recorded in the records of Dubuque County, Iowa. Developer shall submit to City, for approval by City, plans, drawings, specifications, and related documents with respect to the improvements to be constructed by Developer on the Property. All work with respect to the Minimum Improvements shall be in substantial conformity with the Construction Plans approved by City. 2.4 Timing of Improvements. Developer hereby agrees that construction of the Minimum Improvements on the Property shall be commenced within thirty (30) days after the Closing Date, and shall be substantially completed by December 31, 2011. The time frames for the performance of these obligations shall be suspended due to unavoidable delays meaning delays, outside the control of the party claiming its occurrence in good faith, which are the direct result of strikes, other labor troubles, unusual shortages of materials or labor, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion directly results in delays, or acts of any federal, state or local government which directly result in extraordinary delays. The time for performance of such obligations shall be extended only for the period of such delay. 2.5 Certificate of Completion. Promptly following the request of Developer upon completion of the Minimum Improvements, City shall furnish Developer with an appropriate instrument so certifying. Such certification (the Certificate of Completion) shall be in recordable form and shall be a conclusive determination of the satisfaction and termination of the agreements and covenants in this Agreement. SECTION 3. CITY PARTICIPATION 3.1 This section intentionally left blank. 3.2 Economic Development Grant to Developer. For and in consideration of Developer's obligations hereunder, and in furtherance of the goals and objectives of the urban renewal plan for the Project Area and the Urban Renewal Law, City agrees, subject to Developer being and remaining in compliance with the terms of this Agreement, to make Thirty (30) consecutive semi-annual payments (such payments being referred to collectively as the Economic Development Grants) to Developer: 5 November 1, 2013 November 1, 2014 November 1, 2015 November 1, 2016 November 1, 2017 November 1, 2018 November 1, 2019 November 1, 2020 November 1, 2021 November 1, 2022 November 1, 2023 November 1, 2024 November 1, 2025 November 1, 2026 November 1, 2027 May 1,2014 May 1,2015 May 1,2016 May 1,2017 May 1,2018 May 1, 2019 May 1, 2020 May 1, 2021 May 1, 2022 May 1, 2023 May 1, 2024 May 1, 2025 May 1, 2026 May 1, 2027 May 1, 2028 pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in amounts equal to a portion of the tax increment revenues collected by City under Iowa Code Section 403.19 (without regard to any averaging that may otherwise be utilized under Iowa Code Section 403.19 and excluding any interest that may accrue thereon prior to payment to Developer) during the preceding six-month period in respect of the Minimum Improvements constructed by Developer (the Developer Tax Increments). For purposes of calculating the amount of the Economic Development Grants provided in this Section, the Developer Tax Increments shall be only those tax increment revenues collected by City in respect of the increase in the assessed value of the Property above the assessment of January 1, 2011 ($182,210.00). The Developer Tax Increments shall not include (i) any property taxes collected for the payment of bonds and interest of each taxing district, (ii) any taxes for the regular and voter -approved physical plant and equipment levy, (iii) the remaining actual amount of tax increment revenues collected by City in respect of the valuations of the Property prior to January 1, 2012 and (iv) any other portion required to be excluded by Iowa law, and thus such incremental taxes will not include all amounts paid by Developer as regular property taxes. 3.3 To fund the Economic Development Grants, City shall certify to the County prior to December 1, 2011, its request for the available Developer Tax Increments resulting from the assessments imposed by the County as of January 1 of that year and each year thereafter until and including January 1, 2026, to be collected by City as taxes are paid during the following fiscal year and which shall thereafter be disbursed to the Developer on November 1 and May 1 of that fiscal year. (Example: if City so certifies in December, 2011, the Economic Development Grants in respect thereof would be paid to the Developer on November 1, 2013, and May 1, 2014.) 6 3.4 The Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments paid to City that, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the Franklin School TIF Account of City. City hereby covenants and agrees to maintain its TIF ordinance in force during the term hereof and to apply the incremental taxes collected in respect of the Minimum Improvements and allocated to the Franklin School TIF Account to pay the Economic Development Grants, as and to the extent set forth in Section 3.2 hereof. The Economic Development Grants shall not be payable in any manner by other tax increments revenues, or by general taxation or from any other City funds. City makes no representation with respect to the amounts that may be paid to Developer as the Economic Development Grants in any one year and under no circumstances shall City in any manner be liable to Developer so long as City timely applies the Developer Tax Increments actually collected and held in the Franklin School TIF Account (regardless of the amounts thereof) to the payment of the Economic Development Grants to Developer as and to the extent described in this Section. 3.5 City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area and the remaining actual amount of the property taxes paid by Developer to City, or any available Developer Tax Increments resulting from the termination of the annual Economic Development Grants under Section 3.2 hereof, for any purpose for which such tax increment revenues may lawfully be used pursuant to the provisions of the Urban Renewal Law, and City shall have no obligations to Developer with respect to the use thereof. 3.6 Downtown Housing Incentive. (1) City agrees to provide to Developer, on the terms and conditions set forth herein, a grant in the amount of One Hundred Ninety Thousand Dollars ($190,000.00) (the Grant) which shall be funded solely and only from available Downtown Incentive Program funds. (2) Grant funds will be disbursed to Developer after City issuance of a Certificate of Occupancy for the Project. Prior to the disbursement of any funds, Developer shall provide evidence satisfactory to City that the Minimum Improvements have been completed in accordance with the plans and other documentation submitted to City with the application. (3) The Grant funds may be disbursed in phases if Developer obtains a Certificate of Occupancy and evidence satisfactory to City that the improvements have been completed in accordance with the plans and other documentation submitted to City as to a portion of the Project. For example, if Developer completes eight of the nineteen eligible units comprising the Project, obtains a Certificate of Occupancy as to such eight units and provides the other documentation required above, City shall disburse $80,000 of the Grant funds to Developer, reserving the remaining $110,000 for future phases of the Project. 7 SECTION 4. COVENANTS OF DEVELOPER 4.1 The improvements to the Property shall conform to the U.S. Secretary of the Interior's Standards for Rehabilitation. 4.2 This section intentionally left blank. 4.3 Books and Records. During the term of this Agreement, Developer shall keep at all times and make available to City upon reasonable request proper books of record and account in which full, true and correct entries will be made of all dealings and transactions of or in relation to the business and affairs of Developer in accordance with generally accepted accounting principles consistently applied throughout the period involved, and Developer shall provide reasonable protection against loss or damage to such books of record and account. 4.4 Real Property Taxes. Developer shall pay or cause to be paid, when due, all real property taxes and assessments payable with respect to all and any parts of the Property unless Developer's obligations have been assumed by another person pursuant to the provisions of this Agreement. 4.5 No Other Exemptions. During the term of this Agreement, Developer agrees not to apply for any state or local property tax exemptions which are available with respect to the Development Property or the Minimum Improvements located thereon that may now be, or hereafter become, available under state law or city ordinance during the term of this Agreement, including those that arise under Iowa Code Chapters 404 and 427, as amended. 4.6 Insurance Requirements. (1) Developer shall provide and maintain or cause to be maintained at all times during the process of constructing the Minimum Improvements and at its sole cost and expense builder's risk insurance, written on a Completed Value Form in an amount equal to one hundred percent (100%) of the building (including Minimum Improvements) replacement value when construction is completed. Coverage shall include the "special perils" form and developer shall furnish City with proof of insurance in the form of a certificate of insurance. (2) Upon completion of construction of the Minimum Improvements and up to the Termination Date, Developer shall maintain, or cause to be maintained, at its cost and expense property insurance against loss and/or damage to the building (including the Minimum Improvements) under an insurance policy written with the "special perils" form and in an amount not less than the full insurable replacement value of the building (including the Minimum Improvements). Developer shall furnish to City proof of insurance in the form of a certificate of insurance. 8 (3) The term "replacement value" shall mean the actual replacement cost of the building with Minimum Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be reasonably determined from time to time at the request of City, but not more frequently than once every three (3) years. (4) Developer shall notify City immediately in the case of damage exceeding $50,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. Net proceeds of any such insurance (Net Proceeds), shall be paid directly to Developer as its interests may appear, and Developer shall forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as they existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, Developer shall apply the Net Proceeds of any insurance relating to such damage received by Developer to the payment or reimbursement of the costs thereof, subject, however, to the terms of any mortgage encumbering title to the Property (as its interests may appear). Developer shall complete the repair, reconstruction and restoration of Minimum Improvements whether or not the Net Proceeds of insurance received by Developer for such purposes are sufficient. 4.7 Preservation of Property. During the term of this Agreement, Developer shall maintain, preserve and keep, or cause others to maintain, preserve and keep, the Minimum Improvements in good repair and working order, ordinary wear and tear accepted, and from time to time shall make all necessary repairs, replacements, renewals and additions. 4.8 Non -Discrimination. In carrying out the project, Developer shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, sexual orientation, national origin, age or disability. 4.9 Conflict of Interest. Developer agrees that no member, officer or employee of City, or its designees or agents, nor any consultant or member of the governing body of City, and no other public official of City who exercises or has exercised any functions or responsibilities with respect to the project during his or her tenure, or who is in a position to participate in a decision-making process or gain insider information with regard to the project, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the project, or in any activity, or benefit therefrom, which is part of this project at any time during or after such person's tenure. In connection with this obligation, Developer shall have the right to rely upon the representations of any party with whom it does business and shall not be obligated to perform any further examination into such party's background. 4.10 Non -Transferability. Until such time as the Minimum Improvements are complete (as certified by City under Section 2.5), this Agreement may not be assigned by Developer nor may the Property be transferred by Developer to another party. Thereafter, with the 9 prior written consent of City, which shall not be unreasonably withheld, Developer shall have the right to assign this Agreement, and upon assumption of the Agreement by the assignee, Developer shall no longer be responsible for its obligations under this Agreement. 4.11 No change in Tax Classification. Developer agrees that it will not take any action to change, or otherwise allow, the classification of the Property for property tax purposes to become other than commercial property and to be taxed as such under Iowa law. 4.12 Restrictions on Use. Developer agrees for itself, and its successors and assigns, and every successor in interest to the Property or any part thereof that they, and their respective successors and assigns, shall: (1) Devote the Property to, and only to and in accordance with, the. uses specified in the Urban Renewal Plan (and City represents and agrees that use of the Property as a restaurant and upper -story housing, is in full compliance with the Urban Renewal Plan) (however, Developer shall not have any liability to City to the extent that a successor in interest shall breach this covenant and City shall seek enforcement of this covenant directly against the party in breach of same); and (2) Not discriminate upon the basis of race, religion, color, sex, sexual orientation, national origin, age or disability in the sale, lease, rental, use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof (however, Developer shall not have any liability to City to the extent that a successor in interest shall breach this covenant and City shall seek enforcement of this covenant directly against the party in breach of same). 4.13 Compliance with Laws. Developer shall comply with all laws, rules and regulations relating to its businesses, other than laws, rules and regulations the failure to comply with or the sanctions and penalties resulting therefrom, would not have a material adverse effect on the business, property, operations, financial or otherwise, of Developer. SECTION 5. EVENTS OF DEFAULT AND REMEDIES 5.1 Events of Default Defined. The following shall be Events of Default under this Agreement and the term Event of Default shall mean, whenever it is used in this Agreement, any one or more of the following events: (1) Failure by Developer to payor cause to be paid, before delinquency, all real property taxes assessed with respect to the Minimum Improvements and the Property. (2) Failure by Developer to cause the construction of the Minimum Improvements to be commenced and completed pursuant to the terms, conditions and limitations of this Agreement. 10 (3) Transfer of any interest by Developer of the Minimum Improvements in violation of the provisions of this Agreement prior to the issuance of the final Certificate of Completion. (4) Failure by Developer or City to substantially observe or perform any other material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. 5.2. Remedies on Default by Developer. Whenever any Event of Default referred to in Section 5.1 of this Agreement occurs and is continuing, City, as specified below, may take any one or more of the following actions after the giving of written notice by City to Developer (and the holder of any mortgage encumbering any interest in the Property of which City has been notified of in writing) of the Event of Default, but only if the Event of Default has not been cured within sixty (60) days following such notice, or if the Event of Default cannot be cured within sixty (60) days and Developer does not provide assurances to City that the Event of Default will be cured as soon as reasonably possible thereafter: (1) City may suspend its performance under this Agreement until it receives assurances from the Developer deemed adequate by City, that the Developer will cure its default and continue its performance under this Agreement; (2) Until the Closing Date, City may cancel and rescind this Agreement; (3) City shall be entitled to recover from Developer the sum of all amounts expended by City in connection with the funding of the Downtown Rehab Loan/Grant and Economic Development Grant to Developer and City may take any action, including any legal action it deems necessary, to recover such amounts from the Developer; (4) City may withhold the Certificate of Completion; or (5) City may take any action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. 5.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 11 5.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 5.5 Agreement to Pay Attorneys' Fees and Expenses. If any action at law or in equity, including an action for declaratory relief or arbitration, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of litigation from the other party. Such fees and costs of litigation may be set by the court in the trial of such action or by the arbitrator, as the case may be, or may be enforced in a separate action brought for that purpose. Such fees and costs of litigation shall be in addition to any other relief that may be awarded. 5.6 Remedies on Default by City. If City defaults in the performance of this Agreement, Developer may take any action, including legal, equitable or administrative action that may appear necessary or desirable to collect any payments due under this Agreement, to recover expenses of Developer, or to enforce performance and observance of any obligation, agreement, or covenant of City under this Agreement. Developer may suspend their performance under this Agreement until they receive assurances from City, deemed adequate by Developer, that City will cure its default and continue its performance under this Agreement. SECTION 6. GENERAL TERMS AND PROVISIONS 6.1 Notices and Demands. Whenever this Agreement requires or permits any notice or written request by one party to another, it shall be deemed to have been properly given if and when delivered in person or three (3) business days after having been deposited in any U.S. Postal Service and sent by registered or certified mail, postage prepaid, addressed as follows: If to Developer: Franklin Investments, LLC. Attn: Gary Carner 1664 Washington Street Dubuque, IA 52001 With copy to: D. Flint Drake Drake & Freund P.C. 1005 Main Street, Suite 200 Dubuque, IA 52001 If to City: City Manager 50 W. 13th Street Dubuque, Iowa 52001 Phone: (563) 589-4110 Fax: (563) 589-4149 12 With copy to: City Attorney City Hall 50 W. 13th Street Dubuque IA 52001 Or at such other address with respect to either party as that party may, from time to time designate in writing and forward to the other as provided in this Section. 62 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of City and Developer and their respective successors and assigns. 6.3 Termination Date. This Agreement and the rights and obligations of the parties hereunder shall terminate on June 1, 2028 (the Termination Date). 6.4. Execution By Facsimile. The parties agree that this Agreement may be transmitted between them by facsimile machine. The parties intend that the faxed signatures constitute original signatures and that a faxed Agreement containing the signatures (original or faxed) of all the parties is binding on the parties. 6.5 Memorandum of Development Agreement. Developer shall promptly record a Memorandum of Development Agreement in the form attached hereto as Exhibit D in the office of the Recorder of Dubuque County, Iowa. Developer shall pay the costs for so recording. IN WITNESS WHEREOF, City has caused this Agreement to be duly executed in its name and behalf by its Mayor and attested to by its City Clerk and Developer has caused this Agreement to be duly executed on or as of the first above written. CITY OF DUBUQUE, IOWA FRANLKLIN INVESTMENTS, LLC. B' Y ' W ��-:-' g Y Y Roy D. Gary me Mayor Janne F. Schneider City Clerk 13 Managing Member (City Seal) STATE OF IOWA SS COUNTY OF DUBUQUE On this 7 day o "j _' ! 201/, before me the undersigned, a Notary Public in and for the said ounty and State, personally appeared Roy D. Buol and Jeanne F. Schneider, to me personally known, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation executing the instrument to which this is attached; that the seal affixed hereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of the City of Dubuque, Iowa, by authority of its City Council; and that said Mayor and City Clerk acknowledged the execution of said instrument to be the voluntary act and deed o s -id City, land b e•- ntarily executed. N9'ary Public STATE OF IOWA COUNTY OF DUBUQUE SAN M. WINTER COMMISSION NO.16327 MY COMMISSION EXP1R SS ELLA LAHEY Commission Number 743465 My Comm, Exp. i f •{q. a On this k'^ day of` �V\10rU 20 \\, before me the undersigned, a Notary Public in and for the State of Iowa, personally appeared Gary Carner, to me personally known, who, being by me duly sworn, did say that he is the ManagingMember of Franklin Investments, LLC, the limited liability company executing the instrument to which this is attached and that as said Managing Member of Franklin Investments, LLC. acknowledges the execution of said instrument to be the voluntary act and deed of said company, by it and by him, an individual, voluntarily executed. Notary Public F:\USERS\Econ Dev\Franklin School\Development Agreement\20110217 Franklin Inv. DA.doc 14 LIST OF EXHIBITS EXHIBIT A — City Attorney Certificate EXHIBIT B — Opinion of Developer Counsel EXHIBIT C — City Certificate EXHIBIT D — Memorandum of Development Agreement INSURANCE SCHEDULE EXHIBIT A CITY ATTORNEY'S CERTIFICATE 16 BARRY A. LINDAHL, ESQ. CITY ATTORNEY RE: Dear (DATE) THE CITY 0 B I have acted as counsel for the City of Dubuque, Iowa, in connection with the execution and delivery of a certain Development Agreement between (Developer) and the City of Dubuque, Iowa (City) dated for reference purposes the day of 20 The City has duly obtained all necessary approvals and consents for its execution, delivery and performance of this Agreement and has full power and authority to execute, deliver and perform its obligations under this Agreement, and to the best of my knowledge, the representations of the City Manager in his letter dated the day of , 20®, are correct. BAL:tls 17 Very sincerely, Barry A. Lindahl, Esq. City Attorney EXHIBIT B OPINION OF DEVELOPER'S COUNSEL 18 Mayor and City Councilmembers City Hall 13t and Central Avenue Dubuque IA 52001 Re: Development Agreement Between the City of Dubuque, Iowa and Dear Mayor and City Councilmembers: We have acted as counsel for , (Developer) in connection with the execution and delivery of a certain Development Agreement (Development Agreement) between Developer and the City of Dubuque, Iowa ("City") dated for reference purposes the day of , 20. We have examined the original certified copy, or copies otherwise identified to our satisfaction as being true copies, of the Development Agreement and such other documents and records as we have deemed relevant and necessary as a basis for the opinions set forth herein. Based on the pertinent law, the foregoing examination and such other inquiries as we have deemed appropriate, we are of the opinion that: 1. Developer is a corporation organized and existing under the laws of the State of Illinois and has full power and authority to execute, deliver and perform in full Development Agreement. The Development Agreement has been duly and validly authorized, executed and delivered by Developer and, assuming due authorization, execution and delivery by City, is in full force and effect and is valid and legally binding instrument of Developer enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. 2. The execution, delivery and performance by Developer of the Development Agreement and the carrying out of the terms thereof, will not result in violation of any provision of, or in default under, the articles of incorporation and bylaws of Developer, any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, order, statute, rule, regulation or restriction to which Developer is a party or by which Developer's property inbound or subject. 3. There are no actions, suits or proceedings pending or threatened against or affecting Developer in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business (present or prospective), financial position or results of operations of Developer or which in any manner raises any questions affecting the validity of the Agreement or the Developer's ability to perform Developer's obligations thereunder. Very truly yours, 19 EXHIBIT C CITY CERTIFICATE 20 City Manager's Office 50 West 13th Street Dubuque, Iowa 52001-4864 (563) 589-4110 phone (563) 589-4149 fax ctynigr@cityofdubuque.org Dear (DATE) TI -LE CITY OF DUEL I am the City Manager of the City of Dubuque, Iowa and have acted in that capacity in connection with the execution and delivery of a certain Development Agreement between (Developer) and the City of Dubuque, Iowa (City) dated for reference purposes the day of , 20_. On behalf of the City of Dubuque, I hereby represent and warrant to Developer that: (1) City has duly obtained all necessary approvals and consents for its execution, delivery and performance of this Agreement and that it has full power and authority to execute, deliver and perform its obligations under this Agreement. City's attorney shall issue a legal opinion to Developer at time of closing confirming the representation contained herein, in the form attached hereto as Exhibit B. (2) City shall exercise its best efforts to cooperate with Developer in the development process. (3) City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion. (4) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the charter of City, any evidence of indebtedness, agreement or instrument of whatever nature to which City is now a party or by which it or its property is bound, or constitute a default under any of the foregoing. (5) There are no actions, suits or proceedings pending or threatened against or affecting City in any court or before any arbitrator or before or by any governmental 21 body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the financial position or operations of City or which affects the validity of the Agreement or City's ability to perform its obligations under this Agreement. (6) No ordinance or hearing is now or before any local governmental body that either contemplates or authorizes any public improvements or special tax levies, the cost of which may be assessed against the Property. To the best of City's knowledge, there are no plans or efforts by any government agency to widen, modify, or re -align any street or highway providing access to the Property and there are no pending or intended public improvements or special assessments affecting the Property which will result in any charge or lien be levied or assessed against the Property. (7) The representations and warranties contained in this article shall be correct in all respects on and as of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date. MCVM:jh 22 Sincerely, Michael C. Van Milligen City Manager EXHIBIT D MEMORANDUM OF DEVELOPMENT AGREEMENT 23 Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 MEMORANDUM OF DEVELOPMENT AGREEMENT A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal corporation, of Dubuque, Iowa, and Franklin Investments, LLC was made regarding the following described premises: Lot 2-1 & 2-2 of City Lot 595 City Lots 596, 597, & 597A Lot 2-1-2 & Lot 2-2 of City Lot 600 & Lots 3 Thru 6 of City Lot 600in the City of Dubuque. The Development Agreement is dated for reference purposes the day of , 2011, and contains covenants, conditions, and restrictions concerning the sale and use of said premises. This Memorandum of Development Agreement is recorded for the purpose of constructive notice. In the event of any conflict between the provisions of this Memorandum and the Development Agreement itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A complete counterpart of the Development Agreement, together with any amendments thereto, is in the possession of the City of Dubuque and may be examined at its offices as above provided. Dated this day of , 2011. CITY OF DUBUQUE, IOWA FRANKLIN INVESTMENTS, LLC. By By Roy D. Buol Mayor 24 Gary Carner Managing Member Attest: Jeanne F. Schneider City Clerk STATE OF IOWA COUNTY OF DUBUQUE ) ) ) SS On this day of , 20, before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Roy D. Buol and Jeanne F. Schneider, to me personally known, who being by me duly sworn did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to said instrument is the seal of said Municipal Corporation and that said instrument was signed and sealed on behalf of said Municipal corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public, State of Iowa STATE OF IOWA COUNTY OF DUBUQUE ) ) ) SS On this day of 20_, before me the undersigned, a Notary Public in and for the State of Iowa, personally appeared Gary Carner, to me personally known, who, being by me duly sworn, did say that he is the Managing Member of Franklin Investments, LLC., the limited liability company executing the instrument to which this is attached and that as said Managing Member of Franklin Investments, LLC. acknowledges the execution of said instrument to be the voluntary act and deed of said company, by it and by him, an individual, voluntarily executed. Notary Public, State of Iowa 25 INSURANCE SCHEDULE 1. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa. All insurers shall have a rating of A or better in the current A.M. Best Rating Guide. 2. All policies of insurance shall be endorsed to provide a thirty (30) day advance notice of cancellation to the City of Dubuque, except for 10 day notice for non- payment, if cancellation is prior to the expiration date. This endorsement supersedes the standard cancellation statement on the Certificate of Insurance. 3. Developer shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates shall include copies of the following policy endorsements: a) Commercial General Liability policy is primary and non-contributing. b) Commercial General Liability additional insured endorsement. c) Governmental Immunity Endorsements. 4. Each certificate shall be submitted to the contracting department of the City of Dubuque. 5. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. Developer shall be required to carry the following minimum coverage/limits or greater if required by law or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit $2,000,000 Products -Completed Operations Aggregate Limit $1,000,000 Personal and Advertising Injury Limit $1,000,000 Each Occurrence Limit $1,000,000 Fire Damage Limit (any one occurrence) $ 50,000 Medical Payments $ 5,000 This coverage shall be written on an occurrence, not a claims made form. Form CG 25 04 03 97 "Designated Location (s) General Aggregate Limit" shall be included. All deviations or exclusions from the standard ISO commercial general liability form CG 0001, or Business Owners form BP 0002, shall be clearly identified. 26 INSURANCE SCHEDULE (Continued) Governmental Immunity Endorsement identical or equivalent to form attached. Additional Insured Requirement: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers shall be named as an additional insured on General Liability Policies using ISO endorsement CG 20 26 0704 "Additional Insured — Designated Person or Organization," or its equivalent. - See Specimen b) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory for Coverage A Employers Liability: Each Accident $100,000 Each Employee — Disease $100,000 Policy Limit — Disease $500,000 c) UMBRELLA EXCESS LIABILITY LIQUOR OR DRAM SHOP LIABILITY Coverage to be determined on a case by case basis by Finance Director. Completion Checklist ❑ Certificate of Liability Insurance (2 pages) ❑ Designated Location(s) General Aggregate Limit CG 25 04 03 97 (2 pages) ❑ Additional Insured 20 26 07 04 ❑ Governmental Immunities Endorsement 27 CITY OF DUBUQUE, IOWA GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmental Immunity. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non -Denial of Coverage. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Change in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. SPECIMEN 28 rims TPOLICY,l M NCH WOES THE — PLEASE ADDITIONAL IId Ul PEORGANIZATION E "IT FLILV. 1 t AL UARI LIT"Y 20 28071 This entioseril ent.mcdifesirIKur.nr Ptrw rJurirlurthe){r�llfwwing: ip�1M hCCIJ�L 'ENEr L L IIT 1 F t�E I�, f T * L-IEDULE P r rr(S)OrOr anlzatisan{ } The City Dubuque ncl8)°.rdt Il'I I iL . releuGet1 Tri p�arint fl officials, all its elP10 ees ; ri i ue 1u1'ii.eers. d11 i . ti4anrds, pla �fs ipn i nd�`el euiaircriti 5 Arid �le'r 'bi t ]l n1t) r' � O1 Ad4diticriel tr rrrBd T eillpleyheS and voluateers. • ormatinn rewired air •1) Commie We „ rhedule. if Brett th @hove,, will tishown in lhe Declarations. t; xr Br — k ltta t . Atr k9Surmd ira Armond is in - •c14 as an ditiona insured thrr Prawn(*) r c r hni z1 rin a) sF + n inFh •i ddl ". L-ut,ar hr resPscl Ii;i ili 1 "he lily in;ur' ''ProPatg damage" Of "1,1emmi end edwadieirrq Injury" caused, i«1 *bele or lri part. hy your e or OrrEtS$K0 Il0 aqta, Or arrrs- loiithsse acting en your heir: A. In the performance of your orrlr irzg neer:tle sr. B. to nr clix rt kith ,pAur premises: moaned'by or try.' 7 r rR7 Psace des. Inc.. 20134 29 ar' ACICl/RP, CERTIFICATE OF LI """xtUCn (563)556-0272. E 1NtSUEM LE AcEricit 31 KEIT ADDRESS SLAY Si.r.'c11L^. ZIP CIVI StreeL Address ity, 5tme. _!%I BILITY INSURANCE 5` IS CERTIFICATE IS ISSUE[ AS A MATTER OF1NF3F N TBON .LY NDc R NO, RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR MIS ALJER THE COVERAGE AFFORDED SY THE POLICIES BELOW, IN:auRJRS Arrow IN M o ERAGE c a.rla>k . nsRraPnc E1r� by TIF MI 11-11P.5 EIF IYd' 41F'AF : ; LI YL r VII_DW I AvC LIMN ISSUED To THE Nr4E JPEONA1,1D s3lSUfat FOR IH, I'CILICY ,LHIUL7'Ir9 ht:,‘ l L',V. P C.'27 A"ITI �i*J l? HL"N f+M r ITGa31rCEblE*IT,TERM cs C.tHEII I1r2N (I- MN Lx, N"T6efrr T CA Cer ER OOZUMENT Vi1TH REE? 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EXIF3kTiIkMA A&TE ll* , FHE suip,t¢# Hsim i'AI'Il,', �JIr- 3tk rvyE'YIFrrTIIY TT Et THE CErr1F'r rr 10,nm*aim m T11.9 Ler r, tarrwronernmaamwer cn 11#6LLppEdiChiUttiagrEatKIONI0606)114,024XXXI(X1W3' (XXX ACRID 30 4QRPORATI41'E 1 ORTANT If cortirtotoIiola r'l. n.ADDIIIOB LINSURED,tC 'esskalenten tin lilts etrtiflOOladoe5 not carter right la the wrlifitiath lusltier [n liir.n i,t ri . rrivxie rnei7l� . 1 If SUBROGATION 1,5 'w°VWED, sui ct Ura itx 'Is ne�quitu 1� en rent• !1. statement on this i hcldr r in Deli of $1001' enrica^aeroenti,'sa. d a iie7itiuri t7C Chi Vic.#iw q, d slain ri9lls;ie May ba nirtfiF� �+i It lh srxiliti is<. 1"ile uertfia �l uhe krnn _rap 4#do r,fttidos ro xtiikiloi iSsunnstratsiti6Patiltt `Lcd repre5rrt ive pi pr r, xin i1 u_iaUi ut Fi d,;tirSa 101 1 404°4 kl° �4 it atlanativ&y nQ wv e nror r Ili noreraaa iigl 1I Iet,in. 31 POLICY NUMBER EN Ea i .ISI C EERIER I L 1E 4L LlA II~ITY f] II7 P LI V. PE SE READ fl AREFUULL'Y E IGNATED LOCATION GENERAL AGGREGATE LIQ This ni sars r tent mextifiie MEREIALGE,NE@i4L LL4P.rIl l'"Y r: AE PST CHEDULE P EC IMEN De 7fmo entry appears sh oe eppEceble to this encore For ell Gums which cbitgaled Ib3 r d rri ages ' us i b "rlr.,ourranix5f' mode! CO ..' lf-EcTIOf+t jo and fie all rrscBinel expenses caused h a - deraS Unger CC'S/L'- G.E C,(SECTION IJ, Whion can es attributed only to operalienis sire isiyrtati "I�'dn" urn in the SonOuro i, A serrate Do ion Gerierse • • A1/4@gmege&eLimit spires to. h designated ocaten`, and hist irrrit t igni r, the 410 -Hill caF thin General .k3greNete Lim t ahc+ein in the Llecerations • The CJ Signeted Location General, Aggregate E fruit IS tete meet we will _pay For the sum pf .i I damages under 0 . crozc A, exp: demi-, sees becluee of 'bodily. i jurr sr °propurtg e age° included ir, the 'prcd,c1 c. rrnplet rl • -- ,rations herd", .and for medical expanses sr COVER4GE C regardlase of the litlrri- .............................................. . tpato this enc4rrsamen urll hr s};. 32 t Ciaims inrisr `suit cv F'21s n ddrgerat.ali or bringing 'tsu n erlents made ender C E DE A or damages or under G J' FEaAcC ! fer medical expeoses shall our tee ssiq- n,a a Location al „ikt,tirjulgerie Limbi for the: designed Naceti ri", til ac r payments stistl -not reduce the /...a t ishottm in the F r,:tgo' Itrarir 'rcr -rall they re- d uce any niter Designated Lat:alion General Aggregate Lirnit far tent/ ether desedneted 'location' shown rn ire It a Schedule abomi it, This timiis shown in the Declarations for Eich O CCUlrefICA Fire Damage arra Medical EY:- rse rc nhiivue Ia Lp I'r, However: instead of b8itog ieubjKit bo tie Aggregate Limit slier in Ina. D ::raratbris, such limits WEE be 60,0(110 tll- upplicatie ;Jasir -iai,ci I fir,.r!rjcrn Conerel AGgfei9ele l,i8au1 ..Fel sill ir1A11u winch ed he :. I c obligated t: pay damages caused try 'dix:Iarrancee" under COVERAGE A y3E0111014 I), and for all rtkedical Kmp.erotta ensazI h ser -:i, dente under COVERAGE C (SECTION 1) h Ir cannot attributed unit'_ to ageratum at a sin- gle denigrated lac1tietri' shown in the Sdiedule 1, Arty C S"rrenta made under COVeRA E A kw damages Dr Asn. OVERAGE C=or medical expenses shall seduce the atraint e• 5llabie under Ina Bariefal Aggregate Limit ar The Prudurs-CarMel 1 r€ito[ a ' aAg- r It Lill whidiever ie epplice'blr, and €tr paymerle n t raniI any Designated General r rat as ut. cn Guver ge fir fi z ilily aI irt: i 1 rt the products complaed operptiona Ih rc" i viced, any payments for &alleges t c-l&I "hcdi€y iron( cu "pttperiy damage" -hclu l In the', °'pr sducle-corttpleted caaerations herd" will reduce rne PrOdu s rmplated : peratians Ag- eregale Limit and net reduce the General Aqt area ate Lain nue the, Designated L at in (On - era iera y#qqreq Limit.. der the plpeteS erf Orbs endoreeMenL the De e nitions semran s wed by the €addditiori raf the (awing darintkecti: 'Wagon" means premia rMrk errccnar c snip trt ., or premi X11 tion l iree' :attd enly by a strocst; tura a + r rigl-.t--sway of . realmled. ne para aleione at Limits Of Ina Tran (SECTION] 110 ntt otberedee implied by hde is nerd, shall Qallinue to apply as dipulateci. oI. E, SPECT 33 MEN